Certified Business Analysis Professional (CBAP) Practice Test 2026 – All-in-One Study Resource to Ace Your CBAP Exam!

The three categories of risk tolerance associated with stakeholders typically encompass risk-aversion, neutrality, and risk-seeking. These categories reflect how stakeholders perceive and respond to uncertainty in a business context.

Risk-aversion indicates a preference for avoiding risk and opting for strategies that minimize exposure to potential losses. Stakeholders exhibiting this tolerance will usually favor secure and predictable outcomes over high-risk opportunities.

Neutrality represents a balanced approach, where stakeholders neither actively seek out risk nor avoid it, often weighing potential gains against losses to determine the best course of action. They can adapt their stance based on the particulars of a situation, making decisions that align with the current context and their strategic goals.

Risk-seeking stakeholders are willing to embrace uncertainty for the potential of higher rewards. This perspective leads them to develop strategies that might introduce more risk, as they are interested in maximizing opportunities even if they come with greater exposure to failure.

Mitigation, on the other hand, is not a category of risk tolerance but rather a strategy or approach to managing risks. It involves implementing measures to reduce the impact or likelihood of risks but does not define how a stakeholder feels about risk in general. Thus, it is not included in the three categories of risk tolerance. Understanding these distinctions helps in effective